Indian drugmaker Dr. Reddy's has expanded its presence in North America, agreeing to purchase Roche's active pharmaceutical ingredient (API) business in Mexico.
Under the terms of the deal, Dr. Reddy's will pay $59 million for Roche's API operation in Mexico, which includes a state-of-the-art manufacturing facility in Cuernavaca, Mexico, and a product portfolio consisting of roughly 18 products, including mature APIs and a range of intermediates and steroids. The acquisition also includes Roche's business supply contracts and employees in the API business. The plant employs roughly 340 people and has been inspected by the FDA and international regulatory agencies.
The acquisition, which is expected to close by the end of the year, will jumpstart Dr. Reddy's custom pharmaceutical services (CPS) business, company CEO GV Prasad said recently.
"This strategic acquisition provides an opportunity for our CPS business to grow from the current base of $10 million to $100 million over the next 18 months," Prasad noted.